Question 25
Domain 2: Mortgage Loan Origination ActivitiesUnder the SAFE Act, which of the following is specifically prohibited conduct for an MLO?
Correct answer: B
Explanation
The SAFE Act prohibits an MLO from "influencing or attempting to influence an appraiser" because appraiser independence must be preserved in mortgage lending. This conduct is specifically barred as improper interference with the valuation process.
Why each option is right or wrong
A. Collecting a fee for loan origination services
B. Influencing or attempting to influence an appraiser
The Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act), 12 U.S.C. § 5104(a)(1), expressly bars a mortgage loan originator from engaging in conduct that would interfere with appraisal independence, including influencing or attempting to influence an appraiser. In this question, that is the only listed act that is specifically prohibited by the statute; the SAFE Act’s licensing provisions are designed to prevent pressure on valuation outcomes in mortgage transactions.
C. Working for multiple lenders in a year
D. Recommending a specific loan product